Building More Profitable Home Insurance with Customer Value
Customer lifetime value takes time to assess and is a wide-angle view over years.
Customer lifetime value examines segmentation, activation, retention, cross selling and more.
Many insurers have led with auto coverage, then cross-sold homeowners. But strategies are changing.
Customer lifetime value measures customers over time. Working with overwhelming amounts of data can distort the analysis.
One test of a company's ability to generate better levels of customer lifetime value is how well they identify specific needs and move to fill them.
Knowing individual customer lifetime values can help insurers better predict retention, business mix and more.
Insurers that have a better understanding of customers' social environment opens more opportunities for appropriate interactions.
Some customers may be profitable in the short term but less valuable over time.
The key is to begin with useful data, then build out.